CMA-CGM’s High-Stakes Gamble in Syria’s Latakia Port

In a significant move, French shipping giant CMA-CGM informed us they have officially secured an extension to their contract for managing the Latakia Port through their subsidiary, Terminal Link. Latakia Port, Syria’s primary maritime gateway, remains a critical strategic foothold for CMA-CGM, despite the challenging landscape shaped by Western sanctions, ongoing regional instability, and competition from Iran. This extension signals CMA-CGM’s commitment to a long-term presence, reflecting a wager on Syria’s eventual economic revival.

Syria prefers French control over Iranian interest

Latakia Port is Syria’s main maritime gateway, divided into two sections. The Latakia International Container Terminal (LICT), managed by CMA-CGM’s subsidiary Terminal Link, handles docking, container storage, customs brokerage, and freight services. CMA-CGM began managing the LICT in 2009 through a joint venture, gaining a 99% stake in 2019 when the Syrian government renewed its contract for five years. The second section, the General Company for the Port of Latakia oversees public staff, lab testing, and equipment.

Iran has long eyed the port as a strategic foothold on the Mediterranean coast. Leaked documents suggest that Tehran has pushed for control over the port’s LICT, claiming an aim at recouping some of its debts from the Assad regime. However, in light of the port’s weak activity, Iran is likely more interested in gaining a strategic foothold on the Mediterranean akin to Russia’s access through the Port of Tartous. In fact, Iran has already been accused of smuggling weapons through the port, attracting Israeli airstrikes in 2013, 2018, and 2021.

But these are not the only controversies surrounding the Latakia Port. Investigations have pointed to the involvement of Syria’s elite Fourth Division—headed by Maher al-Assad—in large-scale narcotics smuggling operations at the port. Finally, an investigation also revealed that customs oversight appeared largely lacking.

Despite these claims, CMA-CGM’s continued management of Latakia Port is notable for a Western company, given the extensive sanctions on nearly all sectors of Syria’s economy. The Syrian government’s latest renewal of the French company’s management rights—in October 2024, confirmed to Karam Shaar Advisory Ltd. by CMA-CGM on 30 October—likely stems from concerns over potential Israeli airstrikes and further economic sanctions if Iran takes control. To make up for this, however, other leaked documents claim that the Syrian government agreed to offer Iran a share of the port’s revenue as debt repayment, which will continue for 20 years.

CMA-CGM’s contract extension is a clear indication of the company’s high-stakes gamble on Syria’s future economic recovery. Despite the conflict significantly reducing port activity—with total loaded and unloaded cargo volume dropping by 75% between 2009 and 2022—CMA-CGM is betting on future reconstruction and economic revival. To this end, we suspect the company will aim to secure a longer-term contract.

What’s in it for CMA-CGM?

A key factor behind the company’s resilience is its ability to navigate complex Western sanctions. As the only major European firm still operating in Syria, CMA-CGM has spent over a decade refining its compliance mechanisms, allowing it to operate despite US and EU restrictions. The company’s close ties to the French government—particularly the presidency—likely provide additional advantages and minimize the risk of punitive action.

There is also a potentia sentimental connection driving the company’s commitment. The founders of CMA-CGM, the Saadé family, originally hail from Latakia, giving the company a personal stake and adding a layer of motivation beyond the purely strategic and financial considerations.

In late 2023, reports indicated that the Syrian government formed a negotiation committee and invited LICT to discuss a potential contract extension for CMA-CGM. Despite Iran’s persistent interest, Syria’s Ministry of Transport preferred maintaining CMA-CGM’s presence, lauding the company’s resilience during the conflict and its ability to continue operations despite sanctions. This is undoubtedly the main factor beyond the company’s latest contract extension. While leaked documents had hinted at a possible handover to Iran in 2024, this was always unlikely, especially in light of the recent Israeli assertiveness in the region against Iran and its operations.

Following the contract’s extension in October 2024, CMA-CGM continues to service the port with between two and three scheduled stops per week at Latakia and with shipping lines linking Syria to more than a dozen Mediterranean seaports.